Where To Invest $100, $1000 or $2000

Where To Invest $100, $1000 or $2000

Let us discuss the best way to invest money with $100, $1000 or $2000. you can read best investment guide 2019.

1. Where to invest $100

  • Invest in startups/small businesses
Just imagine the scenario of investing $100 in Facebook when it was still a startup! Investing in startups may look like a risky affair in the beginning but can give you good dividends if done with due diligence.  
  • Invest in ETFs/Mutual funds
If you are looking to invest money in your 20s and want to grow without much involvement, ETFs and mutual funds are great options. This allows you to invest in a diversified fund, without any minimum. Even if one stock goes down, your money will remain secure as it will fluctuate with the overall market condition.
  • Invest in real estate
There are real estate schemes where you can invest as low as $100 and get a guaranteed return of 12%. Here, you can invest money to make money fast.

2. Where to invest $1000

  • Invest in your retirement account
 Opening a retirement account (IRA) is perhaps the best thing you can do to boost your financial health, with $1000 in hand. There are 2 types of IRAs- traditional IRAs and Roth IRAs. If you have a plan to withdraw your contribution tomorrow to cover for a down payment, Roth is a better option for you. Else, you should stick to a traditional IRA where, you can withdraw at retirement when you are taxed lower.
  • P2P lending
Peer to Peer landing brings people who have money and those who need loans to one platform and allows one to gain profit by lending money. Here, you can also give small amounts and collect interest as a borrower repays the debt. This is one of the best ways to invest your money.
  • Invest in Real Estate
Real estate can be an indispensable source of passive income and a useful tool for investing money for beginners if you have $1000 to invest. We know you can’t buy a property with it, but you can still invest in REITs (Real Estate Investment Trust). Crowd-funded reality estate projects are something you can consider too which facilitates spending with little money and allows an investor to participate with funds as low as $1000.

3. Where to invest $2000

  • Invest in dividend-paying stocks
If you are setting off with $2000 in hand, you should invest money in stocks, especially in stocks of typically stronger companies and having long histories of paying dividends over 3 % at least. Dividend stocks are the best way to invest your money wb hen the interest rates are low.
  • Index ETFs
Index ETFs (Exchange Traded Funds) allow you to diversify your funds with a single investment. ETFs work similar to regular stocks, and you can exit whenever you are need money, albeit, by paying a brokerage fee. These are great options to invest money in your 20s as you can remain prepared to hold on to your investment for longer periods and allow the market to do its bit.
  • Add to your retirement contributions.
With the $2000 you have, you can maximize your annual contributions to 401K. The amount put into a 401K reduces your ‘before-tax’ income, and basically, you are getting tax-free money. This is a tried and tested idea for investing money for beginners.